Sustainable Development Report 2008: Progress, Challenges, and Six-Point Agenda

1. Global Monitoring Report 2008 MDGs and the Environment Agenda for Inclusive and Sustainable Development

2. World on track on poverty reduction and gender parity at school MDGs, but serious shortfalls likely on nutrition, education, health, and sanitation goals d

3. Africa lags on all MDGs, South Asia on most human development goals. At country level, most countries are off track to meet most MDGs

4. Progress toward MDGs slowest in fragile states— even negative on some MDGs

5. Agenda ahead • Assessment at midpoint shows urgent need to generate stronger, more inclusive momentum toward the MDGs • With stronger efforts by countries and by development partners, most MDGs still achievable for most countries • As MDG 7 underscores, development and environmental sustainability are integrally linked • In this Year of Action for MDGs, need to agree on priority actions and milestones for monitoring progress • Report emphasizes a six-point agenda for inclusive and sustainable development

6. MDGs and the environment: A six-point agenda for inclusive and sustainable development • Sustain and broaden the growth momentum • Achieve better results in human development • Integrate development and environmental sustainability • Scale up aid and increase its effectiveness • Harness trade for strong, inclusive, and sustainable growth • Leverage IFI support for inclusive and sustainable development

7. Increased risks from financial turbulence—developing-country growth slowing but still robust

8. $1 trillion in 2007 Percent of GDP (right axis) Private capital flows expected to ease but remain relatively abundant Net private capital flows to developing countries

9. Commodity Price Index (1990=100) Sharp rises in energy and food prices add to risks

10. Growth in Africa has improved, but varies widely across countries

11. Growth needs to be more inclusive— both across and within countries Annual change in Gini coefficient in 59 developing countries

12. More but better spending on education and health Public spending on education and health typically favors the rich

13. Stronger focus needed on combating malnutrition—higher food prices increase urgency Incidence of stunting remains high in low-income countries

14. Environmental health risks—a significant concern Economic burden of poor environmental health can be high— 1.5-4% of GDP annually

15. Deforestation causes loss of forest equivalent in size to Panama or Sierra Leone every year Annual deforestation by region and income group, 2000-05

16. Developing countries are most vulnerable to climate change and least able to adapt Impact of climate change on agricultural yields, 2079-99

17. Mitigation calls for common but differentiated responsibilities Per capita GHG emissions (including from land use change), 2000

18. Global Environmental Sustainability- One Size Does Not Fit All High income countries Provide global public goods – e.g. Kyoto and beyond Countries in transition (e.g. Ukraine) Increase energy efficiency and control pollution High deforestation countries (e.g. Brazil) – Eliminate perverse incentives, improve governance Rapidly growing countries (e.g. China, India) Reduce carbon intensity of growth High child mortality countries (e.g. Mali) Provide water and sanitation, improve access to electricity Rapidly urbanizing countries (e.g. Vietnam) Manage pollution from transport and industry Agriculture-dependent countries(e.g. Ethiopia) Manage land and water resources, diversify assets Increasing water scarcity (e.g. MNA) Increase water use efficiency, define water use rights Biodiversity rich countries (e.g. Peru) – Conserve natural areas, tap global finance for conservation, develop ecotourism Sub-soil resource rich countries (e.g. Mozambique) Invest resource rents, improve governance

19. Countries’ absorptive capacity rising, but aid falling DAC members’ net ODA flows

20. Time to deliver on aid commitments is now Most of the promised increase in aid has not yet materialized *Based on commitments made at Gleneagles and other donor commitments in 2005

21. Doha remains crucial Support to agriculture has not been declining Gross subsidy equivalents of assistance to farmers, 1960-2004

22. Increase aid for trade—to promote inclusiveness in exploitation of trade opportunities Aid for trade, average 2002-06

23. Trade Restrictiveness Index (%) Trade policy should facilitate transfer of environmentally friendly technologies Environmental goods currently confront significant trade restrictiveness

24. MDBs had record disbursements in 2007 Even as their relative financing role declines, international financial institutions’ impact through leverage remains key MDBs’ gross disbursements by type of flow and region, 2000-07

25. Issues for consideration at the meeting • What are the key elements of the agenda to achieve stronger and more inclusive growth, especially in Africa? • What challenges arise for developing countries from recent economic developments―financial market turmoil, global growth slowdown, and rise in energy and food prices―and how they may be addressed? • What actions are needed to scale up aid and ensure its effectiveness in a changing aid architecture and to leverage more private capital? • What measures are needed to enable countries to harness trade for strong, inclusive, and sustainable growth? • How can financing and technology transfer to developing countries be facilitated to help them achieve climate-resilient and low-carbon growth?